Location of Repository

A Menu of Minimum Wage Variables for Evaluating Wages and Employment Effects: Evidence from Brazil

By Sara Lemos


The international literature on minimum wage greatly lacks empirical evidence from developing countries. Brazil’s minimum wage policy is a distinctive and central feature of the Brazilian economy. Not only are increases in the minimum wage large and frequent but also the minimum wage has been used as an anti-inflation policy in addition to its social role. This study estimates the effects of the minimum wage on both wages and employment using panel data techniques and Brazilian monthly household data from 1982 to 2000 at individual and regional levels. A number of conceptual and identification questions is discussed, for example: (1) Various strategies on how to best measure the effect of a constant (national) minimum wage are summarized in a “menu” of minimum wage variables and used to estimate wage and employment effects. (2) An employment decomposition that separately estimates the effect of the minimum wage on hours worked and on the number of jobs is used. Robust results indicate that an increase in the minimum wage strongly compresses the wages distribution with moderately small adverse effects on employment

Publisher: Dept. of Economics, University of Leicester
Year: 2004
OAI identifier: oai:lra.le.ac.uk:2381/4618

Suggested articles



  1. (2003b): “The Effects of the Minimum Wage on Wages, doi
  2. (2004a): “Minimum Wage Effects across Population Groups in Brazil”, Unpublished Paper.
  3. (2004b): “The Effects of the Minimum Wage Across Sectors in Brazil”, Unpublished Paper.
  4. (1981). A Economia Brasileira: Critica a Razao Dualista. doi
  5. (1997). A Efetividade Do Salario Minimo No Brasil: Pobreza, Efeito-Farol E Padroes Regionais,"
  6. (2001). A Evolucao Da Demanda Por Trabalho Na Industria Brasileira: Evidencias De Dados Por Estabelecimento--1985/97," Pesquisa e Planejamento
  7. (2000). A Evolucao Da Desigualdade No Brasil Metropolitano Entre
  8. (2000). A Reassessment of the New Economics of the Minimum Wage Literature with Monthly Data from the Current Population Survey," doi
  9. ARBACHE (2001): "A Picture of Wage Inequality and the Allocation of Labor through a Period of Trade Liberalization: The Case of Brazil," doi
  10. (2000). Can Rescheduling Explain the New Jersey Minimum Wage Studies?," doi
  11. (1979). Crescimento Economico, Salarios Urbanos E Rurais: O Caso Do Brasil,"
  12. (1975). Desenvolvimento E Reparticao Da Renda No Brasil,"
  13. (1983). Discontinuous Distributions and Missing Persons: The Minimum Wage and Unemployed Youth," doi
  14. (1999). Distribuiçao Regional Da Efetividade Do Salário Mínimo No Brasil," doi
  15. (1992). Do Minimum Wages Reduce Employment? A Case Study of California, 1987-89," doi
  16. (1995). Employment and the 1990-1991 Minimum-Wage Hike,"
  17. (1992). Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws," doi
  18. (1984). Evolucao Historica Do Salario Minimo No Brasil: Fixacao, Valor Real E Diferenciacao Regional,"
  19. (1996). Examining the Evidence on Minimum Wages and Employment,"
  20. (1970). Experience of the Past: The National Minimum, Youth Unemployment and Minimum Wages,"
  21. (1984). Gift Exchange and Efficiency-Wage Theory: Four Views,"
  22. (2002). How Does the Minimum Wage Affect Market Informality in Brazil,"
  23. (1981). Impact of Minimum Wage Legislation on Wage and Price Inflation,"
  24. (1976). Impact of Minimum Wages on Other Wages, Employment, and Family Incomes," doi
  25. (1983). Industrial Accumulation and Living Standards in the Long-Run: The Sao Paulo Industrial Working Class, 1930-75, Part I," doi
  26. (1996). Inflation Regulation and Wage Adjustment Patterns: Non-Parametric Evidence from Longitudinal Data," Anais da Sociedade Brasileira de Econometria,
  27. (2002). International Labor Economics," doi
  28. (1994). Labour Markets with Company Wage Policies," London School of Economics Centre for Economic Performance Discussion Paper.,
  29. (2003). Minimum Wage and Employment Transitions," Unpublished Paper.
  30. (2001). Minimum Wage Effects Throughout the Wage Distribution: Evidence from Brazil's Formal and Informal Sectors," Anais do XXIX Encontro Nacional de Economia. doi
  31. (1998). Minimum Wage Fixing in Mexico,"
  32. (1984). Minimum Wage in Brazil Theory, Policy and Empirical Evidence,"
  33. (1976). Minimum Wage Legislation in the United States," doi
  34. (2000). Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Reply," doi
  35. (2000). Minimum Wages and Employment: A Case Study of the FastFood Industry in New Jersey and Pennsylvania: Comment," doi
  36. (2003). Minimum Wages in Latin America," doi
  37. (1999). Minimum Wages, Employment, and the Distribution of Income," doi
  38. (2001). Modelling Formal Versus Informal Employment and Earnings: Microeconometric Evidence for Brazil," Anais do XXIX Encontro Nacional de Economia.
  39. (1995). Myth and Measurement: The New Economics of the Minimum Wage. doi
  40. (2002). O Impacto Distributivo Do Salario Minimo: A Distribuicao Individual Dos Rendimentos Do Trabalho,"
  41. (1998). O Salario Minimo E Os Outros Salarios No Brasil,"
  42. (1978). Observacoes Sobre a Politica Brasileira De Salario Minimo," IPE/FEA/USP Trabalho para
  43. (2001). Os Impactos Do Salario Minimo Sobre Emprego E Salarios No Brasil: Evidencias a Partir De Dados Longitudinais E Series Temporais,"
  44. (1993). Regional Effects of the Minimum Wage on Teenage Employment," doi
  45. (2002). Rendimentos E Precos,"
  46. (2002). Salario Minimo E Bem Estar Social No Brasil: Uma Resenha Da Literatura,"
  47. (1995). Salario Minimo E Informalidade," doi
  48. (1980). Salario Minimo E Taxa De Salarios No Brasil – Replica,"
  49. (1979). Salario Minimo E Taxa De Salarios No Brasil," doi
  50. (1946). Shortcomings of Marginal Analysis for Wage-Employment Problems,"
  51. (1973). The Determination of Daily Hours and Wages," doi
  52. (2003). The Distributional Effects of Minimum Wages in Brazil: 1996-2001," Unpublished Paper.
  53. (1996). The Economic Impact of Minimum Wages in Europe," Economic Policy: doi
  54. (1982). The Economic Impacts of Minimum Wage Laws: A New Look at an Old Question," doi
  55. (1946). The Economics of Minimum Wage Legislation,"
  56. (2000). The Effect of the Minimum Wage on Employment and Hours," doi
  57. (1982). The Effect of the Minimum Wage on Employment and Unemployment," doi
  58. (1999). The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," doi
  59. (1996). The Effects of Minimum Wages on Teenage Employment and Enrollment: Evidence from Matched Cps Surveys," doi
  60. (1994). The Effects of Minimum Wages on Wage Dispersion and Employment: Evidence from the U.K. Wages Councils," doi
  61. (1999). The Highs and Lows of the Minimum Wage Effect: A Time-Series Cross-Section Study of the Canadian Law," doi
  62. (2000). The Impact of Minimum Wages on Wages, Employment and Informality in Brazil," doi
  63. (1983). The Impact of the Minimum Wage on Other Wages," doi
  64. (2001). The Impacts of the Minimum Wage on the Labor Market, Poverty and Fiscal Budget in Brazil," doi
  65. (1996). The Minimum Wage and the Employment of Youth: Evidence from the Nlsy," doi
  66. (1996). The Minimum Wage as a Redistributive Tool," doi
  67. (1997). Uma Analise Dos Efeitos Do Salario Minimo Sobre O Mercado De Trabalho No Brasil," Rio de Janeiro: Pontificia Universidade Catolica do Rio de Janeiro. doi
  68. (2000). Uma Avaliacao Dos Impactos Do Salario Minimo Sobre O Nivel De Pobreza Metropolitana No Brasil," doi
  69. (2002). Uma Resenha Empirica Sobre Os Efeitos Do Salario Minimo No Mercado De Trabalho Brasileiro," doi
  70. (1976). Unemployment Effects of Minimum Wages," doi
  71. (1999). Wage Inequality in the United States During the 1980s: Rising Dispersion or Falling Minimum Wage?," doi
  72. (1995). What a Wonderful World This Would Be,"
  73. (1992). When the Minimum Wage Really Bites: The Effect of the U.S.-Level Minimum on Puerto Rico," doi
  74. (2003). Where the Minimum Wage Bites Hard: Introduction of Minimum Wages to a Low Wage Sector," doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.